Business to Business Debt Recovery Costs Information

Debt recovery

Our price information for debt recovery is based on claims where:

1. We are instructed by a business in relation to debt recovery action against another business which is based in England or Wales.
2. The claim is in relation to an unpaid invoice which is not disputed by the debtor, and which is for less than £100,000.
3. Enforcement action is not necessary.

Legal fees

Our fees (if fixed fees are applicable to your claim) will range from £600 to £1,100, from the initial letter before action, through to obtaining of a default judgment against the debtor (a judgment where the debtor has not acknowledged nor defended the claim). The fees are calculated on the assumption that the matter is a straightforward fixed-amount debt, which can be evidenced in writing (e.g. invoice). Our fixed fees will typically include:

• Taking instructions from you and reviewing documents in support of your claim.
• Drafting and sending a letter before action to the debtor in accordance with the relevant Pre-Action Protocol.
• Receiving and arranging payment of the debt to you from the debtor.
• Providing further advice to you in respect of options available if payment is not received from the debtor.
• Issuing proceedings through the Court and obtaining a default judgment against the debtor if payment is not received.

It can take between 8-16 weeks from receipt of instructions from you to obtaining a default judgment, assuming all relevant information and documentation is provided to us at the point of your initial instructions and depending on any delays experienced with the Court (which could significantly extend the process of your claim).

If at any point the debtor disputes your claim, we will discuss with you any further work required and provide you with an estimate of our additional fees which will fall outside the fixed fee range referred to above. Those fees will ordinarily be based on the time engaged dealing with the claim, at the hourly rates we will advise you of when you engage our services. Our current hourly rates range from £160 & VAT per hour, to £275 & VAT per hour.

Please note that our fixed fees will not be applicable if your claim comprises other elements such as breach of contract, repossession of a property, multiple parties, etc. In those circumstances, our hourly rates would be applicable.

Our fixed fees and hourly rates do not include the current 20% VAT, which will be added to all invoices as well as disbursements (such as Land Registry fees, tracing agent fees, etc) which may be incurred in the process of dealing with your claim.

It is important to know that disputed claims are allocated to various tracks depending on their value and complexity. Generally, claims up to £10,000 would be allocated to the Small-Claims Track and the process is meant to be simpler. However, you will only be able to recover very limited legal costs in the Small-Claims Track (Court issue fee, hearing fee and fixed costs, which will be less than our fees), and VAT on our fees will not be recoverable from the debtor.

Examples of process of your claim through the Court:

• The debtor files an admission and arranges for payment of the sum claimed as per the claim form.
• The debtor files an admission but fails to make payment. Enforcement proceeding may commence.
• The debtor does not respond to the claim within the time specified. Judgment in default may be obtained and enforcement proceedings may commence.
• The debtor defends the claim in full. The matter will be allocated to the relevant track and directions will be given by the Court as to how the matter will proceed.